Airbnb (ABNB) Q4 2025 earnings summary

Executive summary

• Q4 2025 delivered strong results: revenue up 12% year-over-year to $2.8B, gross booking value (GBV) up 16% to $20.4B, and nights/seats booked up 10%, marking the highest growth quarter in over two years.

• Growth driven by deliberate innovation, including Project Y, which focused on simplifying booking and pricing, and expanding supply for major events like the Paris Olympics and upcoming FIFA World Cup.

• Expansion into new markets (notably Brazil) and new business lines (services, experiences, boutique hotels) is accelerating growth and diversifying offerings.

• AI is being integrated across the platform, notably in customer support, with plans for a fully AI-native experience to drive efficiency and personalization.

Financial highlights

• Q4 revenue reached $2.8B, up 12% year-over-year, exceeding guidance.

• Adjusted EBITDA was $786M (28% margin), also above guidance.

• Net income was $341M, impacted by a $90M one-time non-income tax item.

• Free cash flow for Q4 was $529M; full-year 2025 free cash flow was $4.6B (38% margin).

• $11B in corporate cash/investments and $7B in guest funds at year-end.

Outlook and guidance

• Q1 2026 revenue expected at $2.59B–$2.63B, up 14–16% year-over-year, with a 3-point FX tailwind.

• Full-year 2026 revenue growth projected to accelerate to low double digits, with stable adjusted EBITDA margins.

• Major events (Milan Olympics, FIFA World Cup) expected to provide incremental but not primary growth.

• Effective tax rate expected to drop to mid-high teens in 2026 due to new tax legislation.